BetaShares Technical and Fundamental Outlook for the ASX 200 Index
Our outlook for the S&P 200 Index this quarter remains weak. Valuations are still far from cheap territory and corporate earnings are still under downward pressure. As can be seen in the chart below, market prices continue to languish below the market’s previous uptrend line that had been in place since mid-2012. After a brief attempt to rally though October – with the index reaching a closing level of 5351.6 on October 23 – price performance has since broken down again with the 5000 level tested in mid-November and again this week. A break below recent support around 5000 would open the risk of a bigger correction to around 4655 points – which was the significant low during the mid-2013 market pull back. To read the full fundamental and technical report click here: (VIEW LINK)
Author, columnist, investment strategist and macro-economist. Previous roles at Federal Treasury, OECD, Macquarie Bank and AFR. I develop economic insights and portfolio construction strategies for BetaShares' retail and adviser clients.